Srei to augment capital for infrastructure, equipment finance businesses

Kolkata, Jan 21 (IANS) Srei Infrastructure Finance Limited has decided to augment the capital of its infrastructure finance and equipment finance businesses, a company official said here on Monday.

The move will result in the listing of the company's equipment finance business through a composite scheme of arrangement and amalgamation.

"Today's (Monday) decision will lead to substantial increase in net shareholders' fund and allow shareholders of Srei to directly hold shares of both infrastructure finance and equipment finance businesses," Chairman and Managing Director Hemant Kanoria said.

According to Kanoria, the board of directors of the company at a meeting held here on Monday has approved the scheme, which is subject to regulatory, statutory and other necessary approvals.

"The proposed capital augmentation scheme is expected to further infuse around Rs. 500 crore in our equipment finance business and will pave the way for growth in its revenue and profit," Kanoria said.

He said global and domestic investors will also be able to take advantage of the opportunities.

Following the government's budgetary allocations in roads, railways, ports, affordable housing and other infrastructure space, the growth prospect of infrastructure and equipment finance businesses has improved.

In the last few years, there has been significant growth in sales of construction, mining and allied equipment and the industry expects the demand to remain strong in the coming years, he added.